Correlation Between Byline Bancorp and Israel Acquisitions
Can any of the company-specific risk be diversified away by investing in both Byline Bancorp and Israel Acquisitions at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Byline Bancorp and Israel Acquisitions into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Byline Bancorp and Israel Acquisitions Corp, you can compare the effects of market volatilities on Byline Bancorp and Israel Acquisitions and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Byline Bancorp with a short position of Israel Acquisitions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Byline Bancorp and Israel Acquisitions.
Diversification Opportunities for Byline Bancorp and Israel Acquisitions
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Byline and Israel is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Byline Bancorp and Israel Acquisitions Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Israel Acquisitions Corp and Byline Bancorp is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Byline Bancorp are associated (or correlated) with Israel Acquisitions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Israel Acquisitions Corp has no effect on the direction of Byline Bancorp i.e., Byline Bancorp and Israel Acquisitions go up and down completely randomly.
Pair Corralation between Byline Bancorp and Israel Acquisitions
Allowing for the 90-day total investment horizon Byline Bancorp is expected to generate 18.29 times more return on investment than Israel Acquisitions. However, Byline Bancorp is 18.29 times more volatile than Israel Acquisitions Corp. It trades about 0.12 of its potential returns per unit of risk. Israel Acquisitions Corp is currently generating about 0.18 per unit of risk. If you would invest 2,269 in Byline Bancorp on September 1, 2024 and sell it today you would earn a total of 873.00 from holding Byline Bancorp or generate 38.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Byline Bancorp vs. Israel Acquisitions Corp
Performance |
| Timeline |
| Byline Bancorp |
| Israel Acquisitions Corp |
Byline Bancorp and Israel Acquisitions Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Byline Bancorp and Israel Acquisitions
The main advantage of trading using opposite Byline Bancorp and Israel Acquisitions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Byline Bancorp position performs unexpectedly, Israel Acquisitions can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Israel Acquisitions will offset losses from the drop in Israel Acquisitions' long position.| Byline Bancorp vs. Affinity Bancshares | Byline Bancorp vs. Home Federal Bancorp | Byline Bancorp vs. LINKBANCORP | Byline Bancorp vs. Bankwell Financial Group |
| Israel Acquisitions vs. Consilium Acquisition I | Israel Acquisitions vs. A SPAC II | Israel Acquisitions vs. Athena Technology Acquisition | Israel Acquisitions vs. Pyrophyte Acquisition Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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